17-Day Crypto Slump: The End Is Finally Here 😌

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After what seemed an eternity of five continuous weeks, the relentless exodus from digital asset investment products finally came to a halt, much to the relief of many. Last week, these products attracted a respectable $644 million in inflows, lifting total assets under management by 6.3% from their disheartening March 10 nadir.

The reversal, a genuine cause for celebration, was punctuated by daily inflows throughout the week, effectively snapping a 17-day streak of outflows that had tested the patience of even the most stoic investors.

The latest edition of CoinShares’ Digital Asset Fund Weekly Report heralds this shift as a “decisive turn in sentiment toward the asset class.” Indeed, Bitcoin, the prodigal son of the crypto world, spearheaded the recovery by drawing in a robust $724 million in inflows, reversing a five-week outflow streak that had hemorrhaged a whopping $5.4 billion.

Meanwhile, short-Bitcoin investment products, ever the contrarians, continued their streak of outflows for a third consecutive week, to the tune of $7.1 million. One wonders if these investors are ever tempted by a change in strategy, but then, who am I to question the enigmas of financial psychology?

The altcoin market, always a mixed bag, saw its own dramas. Ethereum, the perennial second-fiddle, endured the largest outflows of $86 million. Fellow altcoins such as Sui, Polkadot, Tron, and Algorand followed suit, each bleeding modest amounts of $1.3 million, $1.3 million, $0.95 million, and $0.82 million, respectively.

On a more positive note, XRP defied the trend by attracting $6.7 million in inflows, closely followed by Solana with $6.4 million. Multi-asset products saw a modest gain of $3.2 million, while Polygon, Chainlink, and Cardano saw smaller but still noteworthy inflows of $0.4 million, $0.2 million, and $0.1 million, respectively.

The United States, ever the dominant force in these matters, accounted for the lion’s share of the inflows with $632 million, ensuring that the positive trend remained robust. Other countries, such as Switzerland, Germany, and Hong Kong, also contributed with inflows of $15.9 million, $13.9 million, and $1.2 million, respectively.

Brazil and Australia, not to be outdone, recorded inflows of $1.1 million and $0.2 million, while Sweden and Canada, perhaps feeling a bit contrarian themselves, saw outflows of $10.3 million and $9.1 million, respectively.

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2025-03-25 07:42